INDIANAPOLIS (AP) — Indiana’s public universities could see their budgets cut another 2 percent if state tax collections continue lagging behind expectations.

Gov. Mike Pence’s budget director told members of the State Budget Committee Thursday that tax collections actually fell between 2013 and 2014. He says that unless they meet expectations for 2015, universities will have to cut roughly $27.5 million.

Budget Director Brian Bailey says the state’s universities will still see a net increase in funding because of spending approved in the state’s 2014-15 budget.

Cuts to the state budget made by the governor have continued as Indiana’s economy slowly improves.

Bailey noted that other agencies have faced those cuts as the state’s K-12 education system was spared.

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